Loans on Jewelry

What should I look for in a Pawn Shop?

Its no secret that when times are tough, more people turn to pawn shops to get cash when they need it. Pawn shops were the number one source of money lending in the United States up until the 1950’s! Here are some things to consider when you need some quick cash and are thinking of using a pawn shop.

Ask: What the monthly interest rate? What are the fees?

A lot of times people will ask about the interest rate, but forget about the fees. If they see a place that only charges 2% interest they wont realize that the place also charges a ticket fee, a storage fee, and more.

Here in California the interest rates and fees are set by the state of California, and licensed pawn brokers need to adhere to these rules. We have very competitive rates and fees, and our loan terms are for 4 months, so you have plenty of time! We also NEVER charge a storage fee.

Ask: How long have you been in business? Where are you located?

You really need to ask them how long they’ve been in business, and how long they have been at that location. If this place is fly-by-night, what happens if they close?

You should choose a pawn shop that has a location that is convenient for you, so that you can travel to make the payments and pick up your merchandise. Being minutes from San Jose and close to many major highways, getting to Security Loan is a breeze.

We have been in the loan business for over 30 years, and we OWN our current location.

Ask: Do you have insurance? Do you require the proper paper work?

If the shop gets broken into, what happens if your stuff gets stolen? If your item goes missing, the pawn shop needs to be fully insured.

Only a fully-insured pawn shop guarantees a patron the ability to receive payment for an item if something happens to it. A written statement of the pawn shops insurance policy should appear on the paperwork youre given when you sign.

We guarantee our customers will get something of equal or greater value. Anyone can apologize, but its how you deal with it that sets pawn shops apart.

When you drop your item off at Security Loan we examine the item under magnification and fully document the condition and supply you with a full written description of the item you are leaving. The item is then sealed and placed in our custom made vault where it will not be touched until you come back and pick it up. We are also fully insured for items that are on our premise in storage.

Ask: How much will you give me?

Be wary of a shop that is trying to convince you to take out the maximum you need. If you only need $2,000, but the pawn broker is pushing you to take out $5,000, then all they want is to collect on additional interest payments from you.

If you take out more than you need, it’s easier to default. Some pawn shops are looking to bury you in debt so you cant come back to retrieve your item. If possible, look for a pawn shop that keeps up with current gold and silver prices.

We look at the prices of gold and silver throughout the day, and if prices are up, we adjust our prices to give our customers more, but if prices are going the other way, we lower them. Its fair, and people need to look for fair, not someone who pushes them into taking a certain figure.

Security Loan is here to help, and we will always advise you in your best interest. We are a part of this community and we want to help you in any way possible.

Ask: Will you send me notifications?

Some people are not best time managers, and theyll get confused as to the date their payments are due or when they should come pick up their items. Security Loan will send you a certified letter reminding you when your loan is due. We do not want you to lose your jewelry and we will do everything possible to insure that you know when the loan is due.

Ask: Will you take a look at my appraisal?

Although sometimes appraisals are a difficult thing to go by, they can give you a good base line for price and quality of an item.

Appraisals are most often used in the case of insurance loss or to get an idea of retail value, but there is a lot of great information on the appraisal which can be helpful to us.

For jewelry items, appraisals will describe the quality and clarity of the diamond, the type of gold used in the setting, and the total carat weight of the stones. Please bring any paperwork that you have on your jewelry into the office when you visit, and we will be sure to evaluate it with the item.

Have more questions about the process?

Call us at (408) 341-0303 or send us an email info@security-loan.com and let us know, we are here to help.